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The new Beijing Automotive Industry Corporation (BAIC) engine, an evolution of the 2.3L 4-cylinder turbocharged gasoline engine from Saab, was designed, built, and tested with close collaboration between BAIC Motor Powertrain Co., Ltd. and Southwest Research Institute (SwRI®). The upgraded engine was intended to achieve low fuel consumption and a good balance of high performance and compliance with Euro 6 emissions regulations. Low fuel consumption was achieved primarily through utilizing cooled low pressure loop exhaust gas recirculation (LPL-EGR) and dual independent cam phasers. Cooled LPL-EGR helped suppress engine knock and consequently allowed for increased compression ratio and improved thermal efficiency of the new engine. Dual independent cam phasers reduced engine pumping losses and helped increase low-speed torque. Additionally, the intake and exhaust systems were improved along with optimization of the combustion chamber design.